In a resounding move that marks regulatory vigilance and stringent enforcement, the Federal Competition and Consumer Protection Commission (FCCPC) has imposed a hefty fine of $110 million on British American Tobacco (BAT) Nigeria and its affiliated companies.
This penalty, which stems from numerous violations of the FCCPC Act and other regulations, marks the FCCPC as one of the most efficient regulatory agencies in Nigeria.
The FCCPC management, headquartered in Abuja, unequivocally declared on Wednesday that BAT and its affiliate entities had breached multiple provisions embedded in the FCCPC Act, the National Tobacco Control Act, and other pertinent legal frameworks.
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This landmark decision was reached following exhaustive scrutiny and engagement between the Commission and the BAT parties, conducted under the Cooperation/Assistance Rules & Procedure (CARP) of 2021.
The specified penalty emerged from the FCCPC’s Cooperation/Assistance Framework (CAF), wherein benefits such as potential reductions in monetary penalties and the prospect of waiving the application of the Commission’s Administrative Penalties Regulations 2020 were outlined.
This cooperative engagement mandated BAT parties to provide written assurances to the Commission under Section 153 of the FCCPA, cementing their commitment to compliance.
“In exchange for BAT parties fulfilling their obligations under the Consent Order, the Commission withdrew pending criminal charges against BATN and one employee for attempting to prevent execution of the search warrant and initial lack of cooperation/compliance with steps in the investigation,” the agency said.
The genesis of this consequential investigation dates back to August 28, 2020, when the FCCPC initiated an extensive inquiry into British American Tobacco Nigeria Limited and its affiliated companies. The decision was catalyzed by credible intelligence, triggering an exhaustive evaluation of the activities of these entities.
The Commission said, “The outcome of the investigation demonstrates the Commission’s desire as well as will to enforce the law and hold businesses accountable; even when it takes complex, painstaking and protracted investigations.”
Moreover, as part of the agreement, the FCCPC said that the implicated companies are mandated to engage in mandatory public health and tobacco control advocacy, ensuring strict adherence to tobacco control legislation and regulations.
The investigation’s procedural arc was punctuated by a significant legal development. The FCCPC secured an Order and Warrant of Search and Seizure from the Federal High Court, enabling simultaneous raids across multiple BAT parties’ locations and a service provider’s premises on January 25, 2021.
Subsequently, an array of evidence, inclusive of electronic communications and corroborative information, was procured and analyzed, substantiating the violations of the FCCPA and other relevant enactments.
“The Commission gathered, received, and procured substantial evidence from forensic analysis of electronic communications and other information/data obtained during the search, as well as other evidence procured during, and after the search from other legitimate sources.
“Additional investigation, including proffers, hearings, transcripts of sworn testimonies, and continuing analysis of evidence established and supported multiple violations of the FCCPA and other enactments,” FCCPC added.
This regulatory accomplishment adds to a series of successes achieved by the FCCPC, which includes cracking down on the harassment tactics employed by digital loan apps. Under the leadership of Babatunde Irukera, the FCCPC has been actively addressing various issues within its purview.
The commission said it generated N56 billion in revenue from fines in 2023.